As Facebook explores ways to generate revenue from WhatsApp, the company is now turning to a startup that already has a lead. The social juggernaut said today it has invested in social-commerce startup Meesho in what is the first time the firm takes equity in an Indian startup.
Neither Facebook nor Meesho, which prior to this announcement had raised about $65 million, shared financial terms of the deal. A source familiar with the matter told TechCrunch the size of the capital was “very significant.”
Meesho, a Y Combinator alumnus, is an online social commerce that connects sellers with customers on social media platforms such as WhatsApp. The four-year-old startup claims to have a network of more than 5 million resellers who largely deal with apparels and electronics items.
These resellers are mostly homemakers, most of whom have purchased a smartphone for the first time in recent years. Meesho has most of its customers in smaller cities and towns, popularly dubbed as India 2 where the next phase of internet users are joining from. These are two things that attracted Facebook to Meesho, Ajit Mohan, VP and Managing Director of Facebook India, told TechCrunch in an interview.
“A platform that is aimed at …read more